Detroit retiree committee reaches deal on pensions, healthcare

A committee created by a U.S. bankruptcy court to represent Detroit’s retired workers said on Friday it reached an agreement in principle with the city over pensions and healthcare, potentially giving the city a key ally. The agreement, which was incorporated into a revised debt adjustment plan the city filed with the court late on Friday, added to a pile of deals Detroit reached with other major creditors this month. It also increases the ranks of creditors that Detroit Emergency Manager Kevyn Orr has lined up so far to support his plan to adjust the city’s $18 billion of debt and exit the biggest municipal bankruptcy in U.S. history that was filed in July 2013. “The deal, which includes significant protections and potential enhancements for retirees under the city’s plan, a cap on maximum pension losses to individual retirees and significantly greater funding for retiree healthcare benefits, reflects the significant efforts of the nine-member committee and its professionals,” said a statement released by the retiree committee’s law firm Dentons.